Interstate, Northridge Form Hotel Fund

Interstate Hotels & Resorts, a hotel management company based in Washington, D.C., and Northridge Capital Inc., a D.C.-based real estate investment firm, have announced the formation of a hospitality fund to acquire up to $400 million of hotel assets.The fund will target upscale full-service properties -- and selected premium-branded limited-service properties -- in key urban and suburban markets that "have strong investment potential and that can benefit from Interstate's proven repositioning and turnaround programs," the companies said. The joint venture will be funded on an approximately 50-50 basis with equity and secured debt. Northridge will contribute up to $45 million of the equity, Interstate up to $5 million, and up to $150 million will come from outside investors, the companies said. "We are beginning to see some positive movement in hotel real estate pricing and feel that properties are starting to become more attractively priced," said John Emery, Interstate's president and chief operating officer. ".... We currently have more than $40 million invested in hotel real estate, and the partnership with Northridge represents an opportunity to significantly increase that investment." Interstate can be found online at http://www.ihrco.com.